Informed sources reported the Kuwait Investment Authority keeps pace with positive economic changes in light of the oil prices above $100 per barrel, and has fulfilled its basic financial benefits for state ministries and some government institutions to the tune of at about 3 billion dinars since the beginning of the year, in coordination with the Ministry of Finance.
The sources told a local Arabic daily the entitlements paid by the authority included the costs of projects that have already been completed by local and foreign companies and financial entities, in addition to entitlements belonging to the Public Corporation for Housing Welfare and other parties, pointing out that the stability of oil prices is between $85 and $90 a barrel. It will provide the “Investment Authority” with support factors capable of pushing many files forward.
KIA sources added the current Board of Directors of the Investment Authority is working in accordance with a comprehensive plan aimed at promoting the investments, projects and ownership of the sovereign fund locally and abroad, in line with the “2035” Vision, noting that the executive management of the KIA, represented by Managing Director Ghanem Al-Ghunaiman and his team, closely follows the investment scenario.
What may be required to switch positions and expand the scope of investments in specific markets, such as the European markets, which have become an alternative to the Authority’s investments in the Russian market, fall within the scope of changing the weights of many markets, according to the reports of institutions specialized in global market indicators.
According to the sources, the “Investment Authority” receives accurate reports from international investment institutions that regulate the relationship with them, agreements to manage the Authority’s funds, indicating that there are red lines that are difficult to cross by these institutions to preserve the identity of the general trends of Kuwait.
The sources confirmed that the authority is on the cusp of achieving good growth rates at the level of many financial portfolios invested abroad during the coming period, explaining that its policy depends on diversity without focusing on a specific sector, as it directs part of its foreign funds towards investments in shares in stable stock exchanges, and through managers Specialists, while not a small share of that money is used in energy, infrastructure and industrial projects, as well as managed real estate portfolios.
The sources added, “The state’s financial surpluses are witnessing a positive development due to the rise in oil prices and the regular transfer of payments by the Petroleum Corporation to the Authority’s accounts, while it is expected that the Authority will be ready to deal with any future entitlements, in accordance with the directives of the Minister of Finance and Chairman of the Board of Directors of the General Investment Authority. Abdul Wahab Al-Rasheed, according to the financial situation and the available outlets.
The Investment Authority had paid commitments represented in foreign debts amounting to 3.5 billion dollars, which came due last March, according to the specified schedule in coordination with the relevant parties.
With the stability of oil prices at their current levels, it is expected that the state’s general budget will exit the cycle of deficit and return again to achieve surpluses, in order to deposit at least 10% of the state’s total revenues annually into the account of the Future Generations Fund, as responsible sources have previously confirmed to Al-Rai said that there is a trend under consideration in this context that is expected to be activated as of next March.
The sources stated that the policy adopted by the Investment Authority also includes updating the operations of weighing investment portfolios in view of the developments of each market separately, provided that this balance ensures the achievement of targeted diversification in accordance with the approved plans.
Moreover, the sources pointed out that the authority’s portfolios in the Russian financial markets (Moscow Stock Exchange), despite the negative repercussions it faced in light of the developments of the Russian-Ukrainian war and the sanctions imposed on Moscow, witnessed remarkable stability after it had lost a large part of its value.
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